Circle Suggests Changes to the Eu Regulator’s Proposed Crypto Standards

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Last Updated on September 6, 2023 by Bitfinsider

Circle reacted to the European Banking Authority’s public consultation on extending the scope of its money laundering and terrorist financing rules to crypto-asset service providers, noting reservations about some of the wording.

Circle expressed worry over the EBA’s proposal’s usage of the word “providers of services in the crypto-assets ecosystem.”

“This term lacks the necessary precision to exclusively encompass businesses subject to MiCA regulation in the EU,” Circle explained.

The stablecoin issuer also stated that the recommendations should not apply to providers who are not subject to MiCA’s regulatory jurisdiction.

“If certain EU firms fall outside MiCA’s regulatory perimeter, they should not be labelled as high risk.” “The fact that they are not covered by EU regulations indicates that they do not warrant financial, prudential, or anti-money laundering (AML) regulation in the EU,” Circle added.

Circle expressed concern that the term “providers of services in the crypto-assets ecosystem” is overly broad in its definition, claiming that the phrase’s ambiguity may unintentionally include providers of technology and ancillary services such as blockchain analytics and web infrastructure.

Circle claimed that the new EBA recommendations must be technology neutral and adhere to the principles established by previously adopted EU law such as the Markets in Crypto-Assets Regulation and the Transfer of Funds Regulation.

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